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UPM-Kymmene Oyj (UPM) Fair Value & Analysis

Basic Materials · FI · Market cap €12.4B · ISIN FI0009005987

What is UPM-Kymmene Oyj really worth?

UK UPM-Kymmene Oyj UPM · HE
Price€24.24
Fair Value€19.43
Upside−19.8%
Quality60/100

A solid business, but trading 25% above our fair value of €19.43.

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Strengths

Low debt · generates free cash flow

Risks

!Weak Growth (revenue 5y +2.4 %/yr)
!Thin margins · 5.7% net margin
!Mixed vs. peers (6/15)
!Narrow moat 39/100
!Weak on valuation: 7 out of 100
!Weak on past: 21 out of 100

For context

·6.19% dividend yield
Evidence: High Range €14.58 – €25.27

Fair value as of: Sep 3, 2026

From 24 valuation models · updated 2 days ago

Fair value updated Sep 3, 2026, revised from €14.21 to €19.43 (+36.7%) since Aug 27, 2026. Share price +3.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid but not exceptional quality (60/100) and above fair value, neither a clear bargain nor a standout compounder.
  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

€31.82 €20.56 Fair Value €19.43 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 3, 2026.

How to read this chart

60‑month range €20.56 – €31.82 · fair‑value band €14.58 – €25.27 · the €24.24 price screens above the €19.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 3, 2026.

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Analysis

UPM-Kymmene Oyj (UPM) currently trades at €24.24, while our model-based Fair Value estimate is €19.43, implying the stock looks roughly 24.8% overvalued today. The Quality Score stands at 60/100 (solid quality), in the Basic Materials sector. Bull case: the Multiples group reads highest at a median of €15.42 per share, and 0 of the 24 models we run sit above the €24.24 price. Bear case: the Growth DCF group reads lowest at €11.07, and 24 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, UPM-Kymmene Oyj generated revenue of €9.5B at a net margin of 5.7%. Revenue declined 5.3% year over year. It earns a return on equity of 5.2%. Net debt stands at €3.1B. Fundamentals as of Sep 3, 2026

Our scenario range runs from €14.58 (bear case) to €25.27 (bull case); at €24.24, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 12% below its 52-week high and 19% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at 19% fair-value upside, at −20%, UPM screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF €13.97 €21.04 €34.13 79
Growth DCF €14.81 €21.67 €33.41 78
Residual Income €14.62 €14.91 €14.31 76
All 24 models by family
DCF Models
FCF DCF €13.97 €21.04 €34.13 79
Owner Earnings €7.87 €12.54 €21.20 74
5Y Revenue Exit €7.10 €10.65 €15.78 72
5Y EBITDA Exit €10.58 €16.67 €24.74 74
5Y P/E Exit €9.00 €13.95 €19.89 70
10Y Revenue Exit €9.46 €12.35 €15.30 68
10Y EBITDA Exit €11.77 €16.07 €20.56 69
10Y P/E Exit €10.81 €14.39 €17.71 65
Earnings-Based
Graham-Dodd €6.19 €7.57 €8.51 67
EPV €0.1500 €0.8500 €1.46 66
Dividend Discount
Gordon GGM €13.79 €15.09 €17.08 69
DDM Multi-Stage €13.79 €17.30 €22.22 67
Multiples
P/E Multiple €11.61 €15.47 €19.34 63
P/S Multiple €11.61 €15.47 €19.34 58
P/B Multiple €11.61 €15.47 €19.34 55
EV/EBIT €4.57 €7.43 €10.30 64
EV/EBITDA €10.56 €15.42 €20.29 67
EV/Revenue €3.42 €6.61 €9.81 51
Asset-Based
NCAV (Graham) €9.48 €12.71 €18.97 54
Growth DCF
Growth DCF €14.81 €21.67 €33.41 78
Rev-Margin DCF €7.10 €11.07 €16.11 72
Economic Profit
Residual Income €14.62 €14.91 €14.31 76
ROIC Compounder €0.1500 €0.8500 €1.46 66
Growth Earnings
Growth-Adj P/E €8.27 €11.81 €15.35 67

Widest divergence: Multiples (€15.42) versus Earnings-Based (€0.8500). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 23.8
P/S ratio 1.18 P/E × margin
EPS (TTM) €1.02 price ÷ EPS = P/E 23.8
Dividend yield 6.2% payout 147%
Net margin 5.0% FY2025
Return on equity 5.2% TTM
More key figures
Profitability
Return on assets (EBIT) 5.3% avg 5y
Operating margin 10.0% TTM
Growth
Revenue (TTM) €9.5B TTM
Revenue growth (YoY) −5.3% 3y avg −6.3%
EPS growth (YoY) +43.7%
Balance sheet & cash flow
Free cash flow €977M FY2025
Net debt €3.1B FY2025 · ≈ 3.2 yrs of FCF

Figures from reported company fundamentals · as of Sep 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 58 · Market factors (momentum, volatility) 56

Profitability 26
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 48
Distance to the 52-week high (market factor)
Net Issuance 88
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

UPM-Kymmene Oyj, together with its subsidiaries, engages in the forest-based bioindustry worldwide. It operates through UPM Fibres, UPM Energy, UPM Adhesive Materials, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other Operations segments.

Full company description

UPM-Kymmene Oyj, together with its subsidiaries, engages in the forest-based bioindustry worldwide. It operates through UPM Fibres, UPM Energy, UPM Adhesive Materials, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other Operations segments. The company offers softwood, birch, and eucalyptus pulp for tissue, specialty papers, packaging papers, graphic papers, and board; sawn timber for joinery, packaging, furniture, planning, and construction industries; and wood-based renewable diesel and renewable naphtha for transport and petrochemical industry. It also generates electricity through hydro, thermal, and nuclear power plants; provides financial portfolio management services, as well as engages in forestry water protection. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, parquet manufacturing, and other industrial applications; wood and wood-based biomass, and forestry services for forest investors and owners; biomedical products, such as nano-fibrillar cellulose for clinical and life science applications; wood-based lignin products for industrial use; and wood-based biochemicals for replacing fossil-based raw materials. It serves distributors, industrial users, publishers, cataloguers, retailers, printing houses, merchants, converters, and label stock manufacturers; label printers; brand owners; and producers of tissue, board, specialty, and graphic paper. The company was founded in 1871 and is headquartered in Helsinki, Finland.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

UPM-Kymmene Oyj reported revenue of €9.7B in FY2025 versus €9.8B in FY2021, a compound −0.4%/yr. Reported net income was €480M in FY2025, compounding −21.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€9.7B
Latest YoY
−6.6%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.4%
Avg. revenue growth/yr (27Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.6%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−8.3% (−14.5 + 6.2)
Revenue −0.4%/yr
FY21 €9.8B
FY22 €11.7B
FY23 €10.5B
FY24 €10.3B
FY25 €9.7B
Net income −21.8%/yr
FY21 €1.3B
FY22 €1.5B
FY23 €388M
FY24 €436M
FY25 €480M
Character of growth · EPS growth decomposed (2014-2025) −6.1 % p.a.
Revenue per share +0.3 %

of which total revenue +0.2 % · buybacks/dilution +0.0 %

EBIT margin −6.5 %
Tax rate −0.1 %
Residual (interest, one-offs) +0.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

UPM screens 25% overvalued. Compare with Suzano S.A →

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Cite: Fair Value Calculator (2026). "UPM-Kymmene Oyj Fair Value". https://www.fairvalue-calculator.com/stock/UPM

Peer Group

Paper & Paper Products · 118 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Top 25%
Fair Value upside −20% · Below median
Return on equity (TTM) 5% · Above median
Return on assets 2% · Above median
Net margin (TTM) 6% · Top 25%
Operating margin (TTM) 10% · Top 25%
Revenue growth −5% · Below median
Dividend yield (TTM) 6.2% · Top 25%
Debt / equity 0.28× · Higher than median

Valuation Multiples vs Paper & Paper Products median · lower = cheaper

P/E (TTM) 23.8× · Pricier than median
P/B 1.44× · Pricier than 75% of peers
P/S (TTM) 1.51× · Pricier than 75% of peers
P/FCF 14.7× · Pricier than 75% of peers
EV/EBITDA 14.4× · Pricier than 75% of peers
PEG 12.89× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE7 · sector 22
FUTURE0 · sector 2
PAST21 · sector 14
HEALTH86 · sector 92
DIVIDEND100 · sector 46

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Paper & Paper Products stocks, each showing price versus our Fair Value estimate (as of Sep 3, 2026).

Stock Price Fair Value vs Fair Value
Suzano S.A SUZ $9.15 $24.16 +164%
Svenska Cellulosa Aktiebolaget SCA (publ) SCAB kr 111.95 kr 45.12 −60%
Shandong Sunpaper Co 002078 ¥13.94 ¥17.29 +24%
Holmen AB HOLMB kr 323.00 kr 217.72 −33%
Nine Dragons Paper (Holdings) Limited 2689 HK$7.92 HK$8.74 +10%
PT Indah Kiat Pulp & Paper Tbk INKP 8,800 IDR 17,945 IDR +104%
Empresas CMPC S.A CMPC 1,049 CLP 1,281 CLP +22%
The Navigator Company NVG €3.24 €2.65 −18%
Xianhe Co 603733 ¥21.11 ¥21.06 +0%
Semapa - Sociedade de Investimento e Gestão, SGPS, S.A SEM €20.70 €24.73 +19%

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Frequently asked questions

Is UPM-Kymmene Oyj (UPM) overvalued or undervalued?
As of Sep 3, 2026, our model estimates a fair value of €19.43 versus a price of €24.24, about −20% upside (overvalued).
What is the fair value of UPM?
Our model-based fair value for UPM-Kymmene Oyj is €19.43 (as of Sep 3, 2026), built from audited fundamentals. The current price: €24.24.
What is the quality score of UPM?
UPM-Kymmene Oyj has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of UPM-Kymmene Oyj (UPM)?
UPM-Kymmene Oyj reported trailing-twelve-month revenue of about €9.5B (latest available figure, as of Sep 3, 2026).
What is the net profit margin of UPM?
The net profit margin of UPM-Kymmene Oyj is about 5.7%, meaning it keeps roughly 5.7% of revenue as net income. Based on the latest reported figures.
Does UPM-Kymmene Oyj pay a dividend?
UPM-Kymmene Oyj currently shows a dividend yield of about 6.19% relative to its recent price (as of Sep 3, 2026).
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